According to an article in Business Week (July 25, 1994), TJ. Izzoo had a great idea after a bad back almost forced him to give up golf. His problem was carrying a golf bag, not swinging a club. So, he designed a hamess-like golf bag strap that distributed the weight equally on both shoulders. In April 1992 he formed Ixzo Systems Inc. In 1993 Izzo made an operating income of $12,000 on revemue of $1 million from selling 75,000 straps. In 1994 Izzo expected to sell 92,000 straps for $1.7 million. 1. Suppose that variable costs per strap are $10. Compute total fixed and total variable costs for 1993 2.Suppose the cost behavior in 1994 was the same ns in 1993, Estimate Irzo's operating income for 1994 (a) with sales at the predicted 92,000 straps, (b) with sales 10% above the predicted level, and (e) with sales 10% below the predicted level. 3. Explain why the predicted 1994 operating income was so much greater than the 1993 operating income